Netflix's Stock Crash In Context

After hitting a high of $291 in July, Netflix
(NFLX) has fallen to $113, a drop of more than 60%.

Ouch.

But when one takes a longer-term perspective, the drop quickly
seems like much less of a big deal.

Netflix's stock is now back to where it was in mid-2010, just
over a year ago. And it's still up more than 20X from a low of $5
back in 2002.

What's more, Netflix's stock has already weathered one even worse
drawdown: A drop of about 75% from 2004-2005, when the company
launched a price war against Blockbuster.
(We know how that one turned out).

Here's a log-chart of Netflix's stock from its IPO to today.
(Unlike a linear chart, which treats all dollar increments
equally, a log chart plots percentage-moves equally). It puts the
crash in context.